industry update │ january 2016 · industry update │ january 2016 m&a overview consumer and...

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulatedby the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

CONSUMER AND RETAIL

INDUSTRY UPDATE │ JANUARY 2016

PAGE |

www.harriswilliams.com

The Harris Williams & Co. Consumer team heads into 2016 riding a wave ofmomentum and is excited about the year ahead. Over the past year, we’ve closed15 consumer transactions across each of our key industry segments, including 13 sell-side and 2 buy-side engagements. We also enter the year with a strong backlog ofengaged deals in all of our core verticals and look forward to helping our clients findthe right partners to work with them to continue growing their companies.

Along with our deal momentum, we continue to make investments in our globalconsumer practice. The firm has hired Edward Arkus and Will Bain in its London office.In addition to hiring Edward and Will, Harris Williams & Co. has engaged Christopher Darlington as a senior advisor. The new additions to the team bringour consumer practice to 30 professionals across the globe. Having previously been with Canaccord (formerly Hawkpoint), Edward, Will, andChris bring 60 years of experienced in the European mid-market consumerM&A space. The Group’s transaction experience includes:

Private Company M&A (sellside and buyside)

Public company advisor (IPOs and take privates)

Private placements and refinancings/restructurings

Strategic reviews for Boards

Other consumer

HotelsHealth and fitness

Restaurants and food

RELEVANT SUB-SECTOR TRANSACTION EXPERTISE

Retail

HARRIS WILLIAMS & CO. CONSUMER UPDATE

1

GROUP OVERVIEW

Harris Williams & Co. is a leadingadvisor to the Consumer market. Oursignificant experience covers a broadrange of end markets, industries, andbusiness models. This particular reportfocuses on trends and metrics in thefollowing areas:

Consumer Durables

Consumer Electronics

Consumer Services

Footwear, Apparel, andAccessories

Franchise Platforms

Internet Retail

Home Furnishings

Household Goods

Infant and Juvenile Products

Jewelry, Gifts, and Collectibles

Omni / Multi-Channel Brands

Outdoor and Lifestyle

Personal Care Products

Pet Care

Specialty and MassMerchant Retailing

CONTACTS

North America

John NeunerManaging [email protected]+1 (804) 915-0125

Corey [email protected]+1 (804) 932-1342

Ryan BudlongDirector [email protected] +1 (415) 217-3409

Brent SpillerDirector

[email protected]+1 (804) 915-0183

Matt ConatyVice [email protected] +1 (415) 217-3423

Chip DugginsVice [email protected] +1 (804) 932-1340

Europe

Edward ArkusManaging [email protected]+44 207 518 8905

Will [email protected]+44 207 518 8906

CONSUMER AND RETAIL


CONTINUED MOMENTUM IN OUR GLOBAL CONSUMER PRACTICE

Edward ArkusManaging Director

Will BainDirector

Christopher DarlingtonSenior Advisor

http://www.harriswilliams.com/

http://www.harriswilliams.com/industries/consumer

mailto:[email protected]








PAGE |

PERSPECTIVES ON RECENT EUROPEAN CONSUMER M&A AND OUTLOOK

CONSUMER AND RETAIL


SECTOR SPOTLIGHT: INFANT & JUVENILE

2

SECTOR SPOTLIGHT: INFANT & JUVENILEEUROEPAN SECTOR DEALFLOW AND VALUATIONS

2015 was a strong year for European consumer sector M& activity with deals totalling nearly €150bn (some 225transactions greater than €50m EV). Continued economic recovery post recession and more positive GDPoutlooks have provided investors with increased confidence.

We are seeing good businesses trade for very attractive multiples. Valuations are being driven by:

Increasing participation from strategics (especially those from the US).

Continued pent up demand from Private Equity. Estimates suggest that there remains record levels of drypowder to be invested in Europe by Private Equity houses.

High availability of debt, at attractive margins. Traditional senior lenders are being put under increasingpressure from alternative debt funds, with now well over 50 individual debt funds targeting the UK mid-market alone.

On the flip side, there have been many instances where poorer business have failed to find a buyer (at anyreasonable price). In an environment when there is increasing pressure to invest from Private Equity, one mightfind this surprising, but it is perhaps indicative of how fast the sector is evolving and the widening gap betweenbuyer and seller expectations.

2016 is off to a strong start, with a number of well know European mid market consumer businesses in the marketalready. With GDP forecasts increasingly strong across Europe (especially in the UK), many investors feel that thenext few years should be a helpful backdrop for investing in the sector.

The European consumer space is evolving quickly, and the best businesses are those which look forward and areable to embrace change, rather than trying to fight it. Invariably this requires significant investment.

Below are some of the key themes that we are seeing across the sector. We have seen these at play acrossmany of the sub-sectors within consumer, and the businesses that we have worked with over recent yearsprovide us first hand knowledge and insight. We would be delighted to discuss these with you further, at yourconvenience.

The polarisation of the market – focus on premium or discount, with the middle ground becomingincreasingly squeezed

The increased importance of the “grey market”. An ageing population across Europe (and one which isincreasingly tech-savvy) has prompted many companies to target this growing segment. Recent changesto the pensions regime in the UK has also given retirees access to additional capital

In retail specifically, the incessant move to “omni-channel” models. The customer wants to browse,purchase and return items in the manner that suits them, real-time. This is making logistics far more complex.The customer journey (from awareness to purchase) has evolved beyond recognition

A move to becoming more healthy – whether it be GFY foods or Apps to track your daily calorie burn. Givenrising levels of obesity, this is a theme that will become increasingly prevalent

Know your customer! Get to know them inside out, and interact with them regularly. We have seen manyinstances where the ability to directly market to the customer database can return huge dividends. But, getit wrong, and you risk doing more harm than good

For operators with a physical store estate, the increasing focus on rising fixed costs (particularly in the majorcities) and reducing store numbers. Recent studies show that a target population can be served effectivelywith a far smaller store portfolio than previously believed if part of an effective multi-channel set up. As aresult, many more mature retailers are finding they have considerable excess space.

Internationalisation – with growth increasingly harder to come by in domestic markets, many businesses arelooking to the US for expansion. Take the likes of Caffè Nero, Carluccio’s, Fat Face and YO! Sushi – all haverecently successfully expanded to the US. Make it there, and you make it big!, but operators realise that theiroffers need to be tailored accordingly – the customers are very different!

KEY SECTOR THEMES

PAGE |

HARRIS WILLIAMS & CO. CONSUMER UPDATE

CONSUMER AND RETAIL


SECTOR SPOTLIGHT: INFANT & JUVENILE

3

SECTOR SPOTLIGHT: INFANT & JUVENILE2015 HW&CO. CONSUMER SNAPSHOT

Harris Williams & Co.’s Consumer Group saw consistent and robust activity throughout 2015. The Group closedtransactions in each of their core verticals – consumer products, consumer services, food, beverage and agribusiness,and restaurants and retail. Companies in the consumer space generated high levels of interest from global strategicand financial buyers. The market yielded attractive valuations and terms for high quality growth assets.

Entering 2016 with a strong pipeline of activity slated for the first half of the year, the firm's Consumer Group expects tosee quality assets in the market continue to trade at strong valuations. With unrivaled international and domestic accessto the right strategic and financial buyers, Harris Williams & Co.’s Consumer Group is a leading advisor to the middlemarket.

http://link.harriswilliams.com/c/443/55c9d4a11c162416a1952b6f9e2076f4a275203b2a9c4c937656a7bd314d0258

PAGE |

KEY TRADING STATISTICS (DETAIL BEGINS ON PAGE 8)

PUBLIC MARKETS OVERVIEW

PUBLIC COMPANY SECTOR PERFORMANCE (12-MONTH % CHANGE IN STOCK PRICE)

CONSUMER AND RETAIL


4

Department Chains

Furniture & Furnishings Retailers

Specialty & Other Retail

Apparel & Footwear Retail

Apparel & Footwear

Pet Care

Home & Office Furniture & Furnishings

Consumer Durables

Consumer & Retail Index

Outdoor & Lifestyle

Consumer Services and Retail

Franchisors

S&P 500

Discount Stores & Mass Merchants

Housewares

Internet Retail


Household Products

Infant & Juvenile

(45.0%) (35.0%) (25.0%) (15.0%) (5.0%) 5.0%

Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear 24 $2,244 (21.5%) (16.7%) 1.3x 9.2x 1.2x 8.7x

Consumer Durables 6 14,334 (15.2%) (11.0%) 0.9x 9.8x 0.8x 6.8x

Consumer Services and Retail Franchisors 8 2,400 (7.4%) (6.3%) 2.2x 10.3x 2.1x 8.5x

Home & Office Furniture & Furnishings 10 1,362 (18.9%) (12.3%) 0.8x 8.6x 0.8x 6.7x

Household Products 5 18,326 (3.7%) 3.7% 3.4x 14.0x 3.4x 13.6x

Housewares 10 3,084 (7.1%) (0.4%) 1.4x 13.1x 1.5x 10.0x

Infant & Juvenile 12 2,971 (0.5%) 4.8% 0.7x 11.0x 0.6x 7.7x

Outdoor & Lifestyle 20 889 (9.2%) (16.2%) 1.3x 10.0x 1.2x 8.8x

Personal Care Products 13 3,013 (0.2%) (6.8%) 1.5x 9.6x 1.4x 11.0x

Pet Care 8 2,215 (3.9%) 2.5% 1.4x 15.2x 1.8x 10.4x

Retail

Apparel & Footwear Retail 31 1,202 (14.6%) (22.5%) 0.6x 5.7x 0.6x 5.4x

Department Chains 8 6,987 (27.3%) (40.4%) 0.6x 5.7x 0.5x 6.1x

Discount Stores & Mass Merchants 14 24,291 (6.9%) (3.5%) 0.7x 10.5x 0.7x 9.8x

Furniture & Furnishings Retailers 14 1,294 (29.4%) (28.6%) 0.7x 5.6x 0.7x 5.8x

Internet Retail 12 3,767 4.4% (0.3%) 2.0x 17.2x 2.3x 14.1x

Specialty & Other Retail 15 3,484 (14.6%) (24.7%) 0.7x 6.4x 0.6x 5.2x

Consumer Products & Services 116 $2,685 (7.3%) (6.5%) 1.3x 10.1x 1.3x 8.8x

Retail 94 $3,626 (14.6%) (23.6%) 0.7x 6.1x 0.7x 5.9x

Consumer & Retail Index 210 $2,992 (8.3%) (8.9%) 1.1x 9.9x 1.0x 8.6x

SectorNumber of

Companies

Median Enterprise

Value ($ M)

Median TEV/

Forward Mulitples

Median TEV/

LTM Multiples

PAGE |

CONSUMER AND RETAIL INDUSTRY STOCK PERFORMANCE

PUBLIC MARKETS OVERVIEW

5

RECENT EQUITY OFFERINGS

CONSUMER AND RETAIL


Close Date Filing Date Issuer Ticker Transaction Type

Gross Proceeds

($ M) Primary Industry

12/14/15 12/14/15 Norwegian Cruise Line Holdings Ltd. NCLH Follow-on $596.1 Hotels, Resorts and Cruise Lines

11/23/15 11/23/15 The J. M. Smucker Company SJM Follow-on 467.3 Packaged Foods and Meats

11/19/15 10/06/15 Duluth Holdings Inc. DLTH IPO 80.0 Internet Retail

11/18/15 11/18/15 Bright Horizons Family Solutions, Inc. BFAM Follow-on 232.9 Education Services

11/05/15 11/05/15 ServiceMaster Global Holdings, Inc. SERV Follow-On 982.1 Specialized Consumer Services

10/16/15 10/15/15 ClubCorp Holdings, Inc. MYCC Follow-On 186.6 Leisure Facilities

10/15/15 10/14/15 Jarden Corp. JAH Follow-On 490.0 Housewares and Specialties

09/24/15 09/21/15 Sportsman's Warehouse Holdings, Inc. SPWH Follow-On 76.6 Specialty Stores

08/11/15 08/10/15 Norwegian Cruise Line Holdings Ltd. NCLH Follow-On 1,180.6 Hotels, Resorts and Cruise Lines

08/10/15 08/10/15 Bright Horizons Family Solutions, Inc. BFAM Follow-On 183.2 Specialized Consumer Services

08/06/15 06/22/15 Planet Fitness, Inc. PLNT IPO 202.0 Leisure Facilities

08/05/15 08/04/15 GNC Holdings Inc GNC Convertible 250.0 Specialty Stores

50

75

100

125

150

175

200

225

250

Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16

Ind

ex

Dow Jones U.S. Retail Index Dow Jones U.S. Consumer Goods Index Dow Jones U.S. Consumer Services S&P 500 Index

PAGE | 6

CONSUMER AND RETAIL


M&A OVERVIEW

CONSUMER AND RETAIL M&A TRENDS

TRADING MULTIPLES AND ANNOUNCED PRIVATE EQUITY M&A ACTIVITY

ANNOUNCED CONSUMER AND RETAIL M&A

Note: Transactions based on publicly available information

Announced Target Buyer

1/15/2016 GE Appliances Inc. Qingdao Haier Co., Ltd. (SHSE:600690)

1/14/2016 Prime Life Nutriceuticals, Inc. Sisquoc Healthcare, Inc.

1/13/2016 Epic Performance, LLC. NutraFuels, Inc. (OTCPK:NTFU)

1/13/2016 Easton Hockey, Inc. Performance Sports Group Ltd. (TSX:PSG)

1/8/2016 Long Elegant Legs, Inc. Long Tall Sally Ltd.

1/7/2016 Gilt Groupe Inc. Hudson's Bay Company (TSX:HBC)

1/7/2016 Majorsales, LLC Level Nine Sports, INC.

1/7/2016 Sojourner Farms, LLC WellPet LLC

1/6/2016 Solut ions In Mind, Inc. Frontline Technologies Group LLC

1/6/2016 Maykah, Inc. Patch Products, Inc.

Last 10 Deals Announced

Aggregate Number Transaction Multiples

Value ($bn) of Deals EV / Revenue EV / EBITDA

$97.7 380 0.94x 12.1x

LTM Deal Statistics

77

57

77

43

66

35 39

68 7183

66

95

15

13

14

25

34

21

18 13

512

26

12

16

2

0

20

40

60

80

100

120

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Nu

mb

er

of Tr

an

sac

tio

ns

Quarterly Consumer M&A Activity

Strategic Buyer PEG Acquirer

$30

$40 $38

$27 $28

$92

$5.8

0

50

100

150

200

250

300

350

400

450

$0

$15

$30

$45

$60

$75

$90

$105

2010 2011 2012 2013 2014 2015 2016

YTD

Nu

mb

er o

f Tran

sac

tion

s

Ave

rag

e T

ran

sac

tio

n V

alu

e

($ in

billio

ns)

Announced Consumer Transactions

Aggregate Transaction Value # of Deals

8.4x

10.7x 10.0x 9.8x

10.8x

12.4x

10.0x

0.00x

0.20x

0.40x

0.60x

0.80x

1.00x

1.20x

1.40x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

2010 2011 2012 2013 2014 2015 2016 YTD

EV

/ LTM S

ale

s Mu

ltiple

EV

/ L

TM E

BIT

DA

Mu

ltip

leMedian Consumer Transaction Multiples

EBITDA Mult Rev Mult

72

31

37

53

73

86

57

66

2

48

28

59

53

76

57

68

84

3

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD

Nu

mb

er

of Tr

an

sac

tio

ns

Consumer Private Equity Investments and Exits

Number of Investments Number of Exits

12.0x 12.1x11.8x 11.9x 11.8x

11.8x12.2x 12.4x

12.0x11.6x

12.4x11.8x 11.7x

13.6x

13.1x

12.1x

10.8x

10.0x 10.2x10.4x

10.0x9.5x 10.0x 10.0x

10.2x

11.3x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

Me

dia

n T

rad

ing

Mu

ltip

les

Median LTM Trading Multiples

Consumer Products & Services Retail

PAGE |

0

2

4

6

8

10

12

14

1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15

Loa

n V

olu

me

by

Qu

art

er

($ i

n b

illi

on

s)

Quarterly Retail Loan Volume

Institutional Pro Rata

7

CONSUMER AND RETAIL


DEBT MARKET OVERVIEW

COMMENTARY ON RECENT CONSUMER AND RETAIL DEBT TRANSACTIONS1

• CVC Capital Partners and Canada Pension Plan Investment Board’s acquisition of Petco Animal Supplies is backedby a $2.5 B term loan. Price talks on the term debt are set at L+450 with a 1% floor and offered at 98.5-99. Thecovenant-lite term loan is pegged to yield 5.8-5.9% to maturity. The transaction also includes a $500 M asset-basedrevolver and $750 M of unsecured notes.

• 1-800 Contacts is looking to secure a $500 M LBO term loan from investors, and has also placed a $210 M second-lienterm loan. The covenant-lite first-lien debt is expected to price at L+450-475, with a 1% floor and a 98.5-99 offer price.Proceeds are set to help finance AEA Investors’ majority acquisition from Thomas H. Lee, which is expected toremain on as a significant shareholder. In early 2014, the Company obtained a $420 M term loan priced at L+325, witha 1% floor to support Thomas H. Lee’s acquisition of the Company from WellPoint.

• Pinnacle Foods, rated BB-/Ba3, as part of its financing for the acquisition of Boulder Brands, launched a $550 Mincremental term loan. The debt is being targeted around L+350, with a .75% floor, and is offered at 99. Additionally,the loan includes six months of 101 soft protection with an expected yield of 4.5% to maturity, and is governed by a5.75x net first-lien leverage test. The loan is rated BB+/Ba2, with a 1 recovery rating.

• PGT Inc. rated B+/B2, is set to launch a $310 M covenant-lite term loan B to finance its proposed acquisition ofWinDoor. In addition to financing the acquisition, proceeds from the loan will be used to fund working capital andgeneral corporate purposes. The financing is also set to include a $40 M revolving credit facility.

KEY RETAIL CREDIT STATISTICS

1) Source: S&P Capital IQ LCD

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15

Loa

n V

olu

me

by

Qu

art

er

($ in

billio

ns)

Quarterly Retail Loan Volume

Institutional Pro Rata

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

L + 600

L + 700

2007 2008 2009 2010 2011 2012 2013 2014 2015 4Q15

Ave

rag

e S

pre

ad

Ove

r LI

BO

R

Average Spread on Retail Loans

Revolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 500

L + 1000

L + 1500

L + 2000

L + 2500

4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15

Ave

rag

e S

pre

ad

Ove

r LI

BO

R

Average Secondary Spread

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash

Interest

EBITDA -

Capex/Cash

Interest

EB

ITD

A M

ultip

le

Credit Statistics

2010 2011 2012 2013 2014 2015

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


8

Price at As a % of Market Cash & Enterprise LTM P/E

($ in millions, except per share data) Ticker 1/15/16 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear

Coach, Inc. COH 31.76 72.4% 8,814 891 1,276 8,428 4,183 921 (10.9%) (5.0%) 69.1% 22.0% 23.2x 2.01x 9.2x 1.86x 8.5x

Columbia Sportswear Company COLM 46.14 61.8% 3,245 36 174 3,107 2,304 310 17.7% 10.8% 46.2% 13.5% 19.6x 1.35x 10.0x 1.28x 9.6x

Carter's, Inc. CRI $91.60 83.6% $4,762 $585 $288 $5,059 $3,017 $462 8.0% 9.5% 41.5% 15.3% 20.8x 1.68x 11.0x 1.62x 10.0x

Crocs, Inc. CROX 8.42 52.5% 620 8 168 459 1,088 0 (10.8%) (0.4%) 47.4% 0.0% NM 0.42x 1601.0x 0.41x 7.7x

Deckers Outdoor Corp. DECK 42.62 48.9% 1,378 350 100 1,628 1,826 251 6.0% 9.2% 47.5% 13.8% 9.7x 0.89x 6.5x 0.82x 5.5x

Fossil Group, Inc. FOSL 30.10 29.2% 1,448 811 302 1,957 3,301 548 (5.9%) 6.4% 55.5% 16.6% 4.9x 0.59x 3.6x 0.64x 5.9x

G-III Apparel Group, Ltd. GIII 43.06 58.2% 1,961 172 54 2,078 2,331 232 12.3% 20.9% 36.2% 10.0% 15.6x 0.89x 9.0x 0.81x 8.2x

Hanesbrands Inc. HBI 29.88 85.9% 11,708 2,779 285 14,202 5,845 960 14.9% 9.3% 37.8% 16.4% 30.4x 2.43x 14.8x 2.37x 13.6x

Iconix Brand Group, Inc. ICON 5.43 14.6% 263 1,472 136 1,598 374 180 1.0% 0.9% 100.0% 48.2% 2.9x 4.28x 8.9x 4.21x 9.8x

Kate Spade & Company KATE 16.41 45.9% 2,095 402 220 2,277 1,212 126 19.4% (6.1%) 60.6% 10.4% 24.2x 1.88x NM 1.68x 10.2x

NIKE, Inc. NKE 58.51 85.8% 99,651 2,176 6,116 95,711 31,339 5,059 5.3% 8.8% 46.3% 16.1% 28.4x 3.05x 18.9x 2.79x 16.8x

Oxford Industries Inc. OXM 60.59 66.4% 1,005 69 7 1,067 1,036 123 12.4% 8.2% 56.2% 11.9% 20.6x 1.03x 8.7x 1.04x 7.9x

Perry Ellis International Inc. PERY 17.90 63.5% 282 132 36 378 903 44 1.6% (1.4%) 34.8% 4.9% NM 0.42x 8.6x 0.40x 6.0x

PVH Corp. PVH 68.78 57.0% 5,636 3,367 370 8,634 7,977 947 (3.0%) 10.3% 52.2% 11.9% 11.7x 1.08x 9.1x 1.07x 8.4x

Ralph Lauren Corporation RL 101.04 58.7% 8,558 1,021 1,126 8,453 7,506 1,227 (1.0%) 2.9% 57.1% 16.3% 15.7x 1.13x 6.9x 1.09x 7.0x

Steven Madden, Ltd. SHOO 29.94 66.9% 1,874 0 61 1,812 1,404 186 5.1% 5.6% 35.2% 13.3% 17.1x 1.29x 9.7x 1.25x 9.1x

Skechers U.S.A., Inc. SKX 26.39 48.4% 4,123 102 511 3,715 3,004 395 32.4% 27.3% 45.3% 13.2% 18.2x 1.24x 9.4x 1.05x 7.4x

Gildan Activewear Inc. TSX: GIL 37.62 82.3% 9,173 462 47 9,588 2,415 384 2.4% 7.4% 24.2% 15.9% 29.4x 3.97x 25.0x 3.56x 15.9x

Tumi Holdings, Inc. TUMI 16.19 63.6% 1,099 0 76 1,023 544 118 6.5% 12.8% 59.0% 21.7% 18.0x 1.88x 8.7x 1.78x 9.2x

Under Armour, Inc. UA 69.87 66.0% 15,079 908 159 15,828 3,688 475 28.4% 28.6% 48.5% 12.9% NM 4.29x 33.3x 3.41x 26.2x

V.F. Corporation VFC 55.55 71.4% 23,681 2,710 567 25,825 12,543 2,114 4.6% 5.3% 48.5% 16.9% 23.1x 2.06x 12.2x 1.96x 11.5x

Vera Bradley, Inc. VRA 13.88 67.5% 527 0 62 465 501 75 (2.3%) (0.8%) 55.5% 15.1% 19.0x 0.93x 6.2x 0.92x 6.2x

Weyco Group Inc. WEYS 25.24 81.4% 272 42 20 295 328 36 8.1% 4.3% 38.0% 11.0% 14.2x 0.90x 8.1x NA NA

Wolverine World Wide Inc. WWW 15.54 44.1% 1,599 826 196 2,228 2,749 297 2.1% 25.4% 39.3% 10.8% 13.1x 0.81x 7.5x 0.82x 7.7x

Mean 61.5% $8,702 $805 $515 $8,992 $4,226 $645 6.4% 8.3% 49.2% 14.9% 18.1x 1.69x 80.3x 1.60x 9.9x

Median 63.5% $2,028 $432 $171 $2,253 $2,373 $304 5.2% 7.8% 47.5% 13.6% 18.2x 1.26x 9.1x 1.25x 8.5x

Consumer Durables

Arcelik AS ARCLK 14.83 86.2% 10,021 5,811 1,564 14,268 13,501 1,316 10.6% 9.4% 31.5% 9.7% 11.8x 1.06x 10.8x 0.95x 8.9x

Electrolux AB ELUX B 186.70 66.0% 53,684 13,019 10,656 56,047 123,117 8,448 12.3% 4.1% 19.6% 6.9% 18.4x 0.46x 6.6x 0.45x 5.9x

iRobot Corporation IRBT 31.03 82.3% 902 0 212 690 570 64 8.8% 6.9% 47.4% 11.2% 27.5x 1.21x 10.8x 1.01x 6.8x

Middleby Corp. MIDD 93.00 74.2% 5,330 756 55 6,032 1,727 372 9.4% 20.4% 39.2% 21.5% 27.5x 3.49x 16.2x 2.66x 13.7x

Haier Electronics Group Co., Ltd. SEHK: 1169 12.82 49.5% 35,781 1,238 9,891 27,128 65,529 3,064 (1.0%) 7.9% 15.2% 4.7% 11.0x 0.41x 8.9x 0.34x 6.5x

Whirlpool Corp. WHR 134.03 61.7% 10,480 4,812 698 14,594 21,334 2,049 12.5% 5.3% 17.4% 9.6% 15.7x 0.68x 7.1x 0.69x 6.0x

Mean 70.0% $19,367 $4,273 $3,846 $19,793 $37,630 $2,552 8.7% 9.0% 28.4% 10.6% 18.6x 1.22x 10.1x 1.02x 8.0x

Median 70.1% $10,251 $3,025 $1,131 $14,431 $17,417 $1,682 10.0% 7.4% 25.6% 9.7% 17.0x 0.87x 9.8x 0.82x 6.6x

Last Twelve Months (LTM) EV / LTM EV / 2016ERevenue Growth LTM Margins

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


9



Consumer Services and Retail Franchisors

GNC Holdings Inc. GNC 26.99 52.2% 2,231 1,408 164 3,475 2,628 477 0.4% 3.4% 37.2% 18.2% 10.3x 1.32x 7.3x 1.30x 7.2x

H&R Block, Inc. HRB 32.33 86.1% 7,628 1,503 363 8,768 3,077 902 1.5% 2.0% 50.0% 29.3% 19.0x 2.85x 9.7x 2.82x 9.2x

Planet Fitness, Inc. PLNT 14.97 72.4% 548 504 28 1,023 321 96 52.0% NA 52.4% 30.1% 18.4x 3.19x 10.6x 2.99x 7.6x

Regis Corp. RGS 14.38 79.3% 689 120 177 632 1,823 87 (3.5%) (4.6%) 33.9% 4.8% NM 0.35x 7.3x 0.35x 6.5x

Realogy Holdings Corp. RLGY 33.55 67.4% 4,922 4,291 567 8,646 5,659 754 6.9% 8.8% 48.4% 13.3% 25.4x 1.53x 11.5x 1.43x 10.0x

ServiceMaster Global Holdings, Inc. SERV 38.54 96.4% 5,219 2,762 283 7,698 2,570 591 6.5% NA 47.4% 23.0% 31.2x 3.00x 13.0x 2.84x 11.8x

Winmark Corp. WINA 92.24 85.2% 381 71 1 450 69 37 16.9% 9.7% 88.7% 54.1% 20.6x 6.55x 12.1x NA NA

Mean 77.0% $3,088 $1,523 $226 $4,385 $2,307 $421 11.5% 3.9% 51.1% 24.7% 20.8x 2.68x 10.2x 1.95x 8.7x

Median 79.3% $2,231 $1,408 $177 $3,475 $2,570 $477 6.5% 3.4% 48.4% 23.0% 19.8x 2.85x 10.6x 2.12x 8.4x

Home & Office Furniture & Furnishings

The Dixie Group, Inc. DXYN 4.43 38.5% 74 136 0 210 419 16 5.6% 17.2% 24.7% 3.9% NM 0.50x 13.0x 0.48x NA

HNI Corp. HNI 32.00 55.4% 1,414 257 31 1,640 2,354 216 11.2% 6.0% 36.2% 9.2% 18.1x 0.70x 7.6x 0.70x 6.1x

Hooker Furniture Corp. HOFT 27.98 91.7% 303 0 49 253 251 27 6.0% 5.7% 27.1% 10.6% 18.7x 1.01x 9.5x 0.99x NA

Kimball International, Inc. KBAL 9.79 75.4% 366 0 22 344 613 44 12.2% (19.1%) 31.4% 7.2% 24.8x 0.56x 7.8x NA NA

Knoll, Inc. KNL 17.25 66.2% 842 258 10 1,090 1,085 128 9.1% 8.0% 36.9% 11.8% 12.9x 1.00x 8.5x 0.95x 6.9x

Leggett & Platt, Incorporated LEG 38.79 75.6% 5,279 993 251 6,020 3,926 546 6.4% 1.9% 22.8% 13.9% 19.2x 1.53x 11.0x 1.46x 9.9x

La-Z-Boy Incorporated LZB 21.60 73.6% 1,084 5 85 1,004 1,457 133 4.7% 5.3% 36.6% 9.2% 15.5x 0.69x 7.5x 0.64x 6.2x

Herman Miller Inc. MLHR $25.59 78.2% $1,531 $257 $60 $1,728 $2,213 $250 9.6% 8.9% 38.0% 11.3% 13.7x 0.78x NM 0.74x 6.6x

Steelcase Inc. SCS 12.91 63.1% 1,580 300 266 1,614 3,062 277 (0.9%) 2.6% 32.0% 9.0% 14.0x 0.53x 5.8x 0.52x 5.0x

Tempur Sealy International Inc. TPX 62.02 75.1% 3,860 1,486 72 5,274 3,129 369 7.1% 29.9% 39.3% 11.8% 29.4x 1.69x 14.3x 1.59x 10.5x

Mean 69.3% $1,633 $369 $85 $1,918 $1,851 $201 7.1% 6.6% 32.5% 9.8% 18.5x 0.90x 9.5x 0.90x 7.3x

Median 74.3% $1,249 $257 $55 $1,352 $1,835 $175 6.8% 5.8% 34.1% 9.9% 18.1x 0.74x 8.5x 0.74x 6.6x

Household Products

Church & Dwight Co. Inc. CHD 78.23 86.2% 10,258 981 211 11,028 3,387 784 4.1% 6.0% 44.5% 23.1% 25.8x 3.26x 14.1x 3.21x 13.7x

Colgate-Palmolive Co. CL $63.53 88.8% $56,981 $6,790 $1,591 $62,180 $16,356 $4,474 (6.1%) (1.2%) 58.7% 27.4% 23.5x 3.80x 13.9x 3.90x 13.7x

The Clorox Company CLX 127.32 96.6% 16,436 2,227 383 18,280 5,693 1,195 3.1% 1.2% 44.1% 21.0% 26.6x 3.21x 15.3x 3.18x 14.6x

Prestige Brands Holdings, Inc. PBH 48.07 88.6% 2,536 1,472 22 3,985 786 274 27.8% 12.7% 58.1% 34.9% 24.6x 5.07x 14.5x 4.85x 13.6x

The Procter & Gamble Company PG 76.15 83.0% 207,172 30,487 12,606 225,053 74,035 18,212 (6.4%) (3.7%) 50.6% 24.6% 24.7x 3.04x 12.4x 3.39x 12.8x

Mean 88.6% $58,676 $8,391 $2,963 $64,105 $20,051 $4,988 4.5% 3.0% 51.2% 26.2% 25.1x 3.68x 14.0x 3.70x 13.7x

Median 88.6% $16,436 $2,227 $383 $18,280 $5,693 $1,195 3.1% 1.2% 50.6% 24.6% 24.7x 3.26x 14.1x 3.39x 13.7x

Housewares

Fiskars Oyj Abp FIS1V 17.51 83.1% 1,434 348 478 1,304 976 83 25.8% 9.4% 38.1% 8.5% 1.9x 1.34x 15.8x 1.03x 9.6x

Helen of Troy Limited HELE 88.28 82.9% 2,497 475 21 2,951 1,538 212 11.4% 7.0% 41.5% 13.8% 19.3x 1.92x 13.9x 1.88x 12.3x

Jarden Corp. JAH 51.25 88.4% 11,241 5,858 1,096 16,003 8,432 895 4.5% 8.4% 31.9% 10.6% 44.4x 1.90x 17.9x 1.63x 10.8x

Libbey Inc. LBY 16.55 39.4% 362 447 30 779 837 113 (1.0%) 0.5% 23.6% 13.5% 6.9x 0.93x 6.9x 0.93x 6.4x

Lifetime Brands, Inc. LCUT 11.63 70.7% 163 156 6 313 592 35 5.5% 8.0% 36.4% 5.8% 16.1x 0.53x 9.1x 0.52x NA

Nacco Industries Inc. NC 44.44 70.6% 304 174 12 466 927 3 1.7% 3.8% 19.6% 0.4% NM 0.50x 138.9x NA NA

Newell Rubbermaid Inc. NWL 37.48 73.6% 10,015 2,741 266 12,489 5,881 991 3.8% 1.5% 38.8% 16.9% 26.3x 2.12x 12.6x 2.07x 11.6x

SEB SA SK 90.12 92.5% 4,427 908 458 4,878 4,540 497 9.3% 4.0% 11.5% 10.9% 22.3x 1.07x 9.8x 1.00x 8.8x

Spectrum Brands Holdings, Inc. SPB 99.04 93.0% 5,876 3,973 248 9,602 4,690 732 5.9% 13.0% 35.7% 15.6% 37.2x 2.05x 13.1x 1.89x 10.4x

Tupperware Brands Corporation TUP 50.30 69.0% 2,533 895 93 3,335 2,372 406 (10.3%) (2.4%) 67.1% 17.1% 12.1x 1.41x 8.2x 1.46x 8.2x

Mean 76.3% $3,885 $1,597 $271 $5,212 $3,078 $397 5.7% 5.3% 34.4% 11.3% 20.7x 1.38x 24.6x 1.38x 9.8x

Median 78.3% $2,515 $685 $171 $3,143 $1,955 $309 5.0% 5.5% 36.0% 12.2% 19.3x 1.37x 12.9x 1.46x 10.0x

Last Twelve Months (LTM) LTM Margins EV / LTM EV / 2016ERevenue Growth

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


10



Infant & Juvenile

Carter's, Inc. CRI 92.08 84.1% 4,787 585 288 5,084 3,017 462 8.0% 9.5% 41.5% 15.3% 20.9x 1.69x 11.0x 1.62x 10.1x

Crown Crafts, Inc. CRWS 8.49 94.6% 85 0 6 79 88 12 9.4% 2.9% 27.0% 13.1% 12.8x 0.89x 6.8x 0.88x 6.5x

Dorel Industries Inc. DII.B 26.46 63.8% 858 602 38 1,422 2,715 134 4.0% 3.8% 21.4% 4.9% NM 0.52x 10.6x 0.50x 7.4x

Hasbro Inc. HAS 70.01 82.9% 8,725 1,674 574 9,825 4,281 822 0.5% 1.2% 53.3% 19.2% 19.9x 2.30x 12.0x 2.18x 10.7x

JAKKS Pacific, Inc. JAKK 7.51 73.1% 139 240 81 298 836 65 20.6% 7.4% 30.9% 7.8% 7.7x 0.36x 4.6x 0.40x 5.2x

Mattel, Inc. MAT 26.70 87.7% 9,061 2,261 290 11,032 5,697 834 (7.3%) (3.4%) 49.0% 14.6% 30.2x 1.94x 13.2x 2.00x 12.7x

Mothercare plc MTC 2.23 74.7% 380 0 27 353 691 31 (4.2%) (4.3%) 15.8% 4.5% NM 0.51x 11.4x 0.49x 6.6x

Newell Rubbermaid Inc. NWL 39.35 77.3% 10,514 2,741 266 12,989 5,881 991 3.8% 1.5% 38.8% 16.9% 27.6x 2.21x 13.1x 2.15x 12.0x

The Children's Place, Inc. PLCE 63.75 91.2% 1,273 34 219 1,089 1,706 148 (2.5%) (1.0%) 35.9% 8.7% 23.4x 0.64x 7.3x 0.63x 6.0x

Goodbaby International Holdings Limited SEHK: 1086 2.96 74.4% 3,281 2,033 796 4,519 7,159 284 50.6% 18.7% 26.0% 4.0% NM 0.63x 15.9x 0.60x 8.1x

Summer Infant, Inc. SUMR 2.18 62.1% 40 56 1 95 206 (1) 3.4% (5.5%) 30.8% NM NM 0.46x NM 0.44x 6.3x

TOMY Company, Ltd. TSE: 7867 702.00 82.5% 59,701 77,580 33,022 104,259 153,126 11,013 2.6% (5.5%) 35.6% 7.2% NM 0.68x 9.5x 0.61x 8.2x

Mean 79.0% $8,237 $7,317 $2,967 $12,587 $15,450 $1,233 7.4% 2.1% 33.8% 10.6% 20.3x 1.07x 10.5x 1.04x 8.3x

Median 79.9% $2,277 $594 $242 $2,971 $2,866 $216 3.6% 1.3% 33.3% 8.7% 20.9x 0.66x 11.0x 0.62x 7.7x

Outdoor & Lifestyle

Arctic Cat Inc. ACAT $12.42 31.3% $161 $16 $11 $166 $638 $9 (17.9%) (0.4%) 15.7% 1.4% NM 0.26x 18.0x 0.25x 5.3x

Brunswick Corporation BC 44.52 78.6% 4,053 455 657 3,851 4,058 491 8.9% 4.1% 27.0% 12.1% 18.0x 0.95x 7.9x 0.89x 6.6x

Black Diamond, Inc. BDE 4.06 37.8% 133 20 36 117 192 1 15.3% 5.5% 38.0% 0.5% NM 0.61x NM 0.78x 17.7x

Columbia Sportswear Company COLM 46.01 61.6% 3,236 36 174 3,098 2,304 310 17.7% 10.8% 46.2% 13.5% 19.6x 1.34x 10.0x 1.28x 9.5x

Callaway Golf Co. ELY 8.95 86.9% 805 27 42 791 825 35 (6.2%) (1.7%) 41.6% 4.3% NM 0.96x NM 0.90x 13.8x

Escalade Inc. ESCA 11.52 57.6% 163 32 3 192 152 19 12.5% 2.0% 29.1% 12.6% 12.4x 1.26x 10.0x 1.17x 8.7x

Fox Factory Holding Corp FOXF 15.24 77.7% 564 60 5 618 345 53 15.9% 20.4% 30.5% 15.4% 27.7x 1.79x 11.6x 1.62x 8.9x

GoPro, Inc. GPRO 15.26 23.3% 2,099 0 513 1,586 1,817 294 62.0% NA 46.7% 16.2% 12.5x 0.87x 5.4x 0.91x 8.2x

Amer Sports Corp. HLSE: AMEAS 25.13 89.5% 2,949 833 217 3,565 2,456 253 12.6% 7.0% 45.0% 10.3% 32.3x 1.45x 14.1x 1.33x 12.4x

Rapala VMC Corp. HLSE: RAP1V 4.70 80.3% 180 121 11 290 281 23 1.9% (0.4%) 50.7% 8.2% 28.6x 1.03x 12.6x 1.01x 8.8x

Harley-Davidson, Inc. HOG 42.90 64.7% 8,231 6,936 1,011 14,156 6,015 1,381 (3.3%) 2.5% 36.9% 23.0% 11.5x 2.35x 10.3x 2.61x 10.5x

Johnson Outdoors Inc. JOUT 22.45 63.6% 223 7 69 162 430 27 1.2% 1.5% 39.9% 6.3% 20.9x 0.38x 6.0x 0.36x NA

Malibu Boats, Inc. MBUU 15.47 64.1% 277 77 11 343 238 39 22.0% NA 26.8% 16.5% 15.7x 1.44x 8.7x 1.31x 6.7x

Marine Products Corp. MPX 5.80 64.5% 221 0 18 203 195 19 12.2% 10.9% 20.6% 9.5% 17.1x 1.04x NM 0.98x 9.8x

Nautilus Inc. NLS 19.50 85.0% 604 0 75 530 322 46 25.3% 19.4% 52.5% 14.2% 22.7x 1.65x 11.6x 1.31x 8.8x

Polaris Industries Inc. PII 80.10 50.6% 5,251 317 226 5,342 4,959 916 14.2% 16.7% 29.6% 18.5% 11.3x 1.08x 5.8x 1.12x 6.0x

Sturm, Ruger & Co. Inc. RGR 56.00 83.7% 1,047 0 60 987 521 121 (13.7%) 5.6% 30.2% 23.2% 35.9x 1.89x 8.2x 1.69x 7.8x

Smith & Wesson Holding Corporation SWHC 22.30 84.0% 1,217 176 54 1,338 603 147 8.3% 6.4% 38.2% 24.4% 21.6x 2.22x 9.1x 1.99x 8.0x

Shimano Inc. TSE: 7309 16,970.00 84.0% 1,573,185 9,075 175,570 1,406,690 378,996 97,417 21.3% 16.0% 40.2% 25.7% 19.4x 3.71x 14.4x 3.61x 13.7x

V ista Outdoor Inc. VSTO 45.67 92.7% 2,846 691 86 3,451 2,058 292 (5.6%) NA 26.5% 14.2% 40.6x 1.68x 11.8x 1.49x 10.2x

Mean 68.1% $80,372 $944 $8,942 $72,374 $20,370 $5,095 10.2% 7.4% 35.6% 13.5% 21.6x 1.40x 10.3x 1.33x 9.6x

Median 71.2% $926 $48 $65 $889 $620 $87 12.4% 5.6% 37.4% 13.8% 19.6x 1.30x 10.0x 1.22x 8.8x

Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2016E

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


11




Avon Products Inc. AVP 2.64 27.9% 1,150 2,314 624 2,839 7,626 642 (16.9%) (10.5%) 60.9% 8.4% NM 0.37x 4.4x 0.43x 5.7x

The Estée Lauder Companies Inc. EL 82.88 90.4% 30,602 2,066 1,087 31,581 10,984 2,099 0.5% 3.9% 80.5% 19.1% 27.2x 2.88x 15.0x 2.77x 14.1x

Herbalife Ltd. HLF 50.31 81.2% 4,655 1,653 813 5,496 4,504 700 (11.6%) 4.9% 52.2% 15.5% 12.0x 1.22x 7.9x 1.20x 7.5x

Kimberly-Clark Corporation KMB 125.71 96.7% 45,632 7,657 643 52,646 18,880 4,216 1.5% (3.4%) 35.1% 22.3% NM 2.79x 12.5x 2.81x 12.6x

Medifast Inc. MED 29.40 86.8% 346 0 66 280 274 42 2.4% (7.2%) 73.4% 15.2% 19.5x 1.02x 6.7x 0.99x 7.2x

Nu Skin Enterprises Inc. NUS 32.30 51.4% 1,849 253 317 1,785 2,284 342 (24.2%) 3.2% 79.2% 15.0% 13.4x 0.78x 5.2x 0.78x 5.1x

The Procter & Gamble Company PG 76.67 83.5% 208,586 30,487 12,606 226,467 74,035 18,212 (6.4%) (3.7%) 50.6% 24.6% 24.9x 3.06x 12.4x 3.40x 12.8x

Elizabeth Arden, Inc. RDEN 7.57 40.5% 222 466 37 650 967 (17) (11.4%) (8.9%) 42.9% NM NM 0.67x NM 0.65x 14.0x

Revlon, Inc. REV 25.64 61.5% 1,345 1,849 181 3,013 1,893 311 (1.9%) 10.7% 66.0% 16.4% 38.0x 1.59x 9.7x NA NA

Sally Beauty Holdings Inc. SBH 26.94 76.4% 4,067 1,788 140 5,714 3,834 599 2.2% 2.9% 49.5% 15.6% 18.1x 1.49x 9.5x 1.44x 9.3x

ULTA Salon, Cosmetics & Fragrance, Inc. ULTA 182.00 96.6% 11,593 0 360 11,233 3,703 629 21.0% 21.9% 35.0% 17.0% 39.1x 3.03x 17.9x 2.61x 15.2x

USANA Health Sciences Inc. USNA 118.59 67.0% 1,514 0 174 1,340 914 149 22.0% 13.4% 82.8% 16.3% 16.9x 1.47x 9.0x 1.34x 7.8x

All for One Steeb AG XTRA:A1OS $73.70 95.8% $367 $38 $41 $364 $242 $26 11.2% 16.3% 23.6% 10.8% 32.1x 1.51x 13.9x 1.41x 13.4x

Mean 73.5% $23,994 $3,736 $1,315 $26,416 $10,011 $2,150 (0.9%) 3.3% 56.3% 16.4% 24.1x 1.68x 10.4x 1.65x 10.4x

Median 81.2% $1,849 $1,653 $317 $3,013 $3,703 $599 0.5% 3.2% 52.2% 15.9% 22.2x 1.49x 9.6x 1.38x 11.0x

Pet Care

Blue Buffalo Pet Products, Inc. BUFF 16.36 56.8% 3,209 388 185 3,412 1,000 192 15.0% NA 39.9% 19.2% 32.1x 3.41x 17.8x 3.10x 14.2x

Central Garden & Pet Company CENT $13.25 72.5% $665 $400 $48 $1,017 $1,651 $137 2.9% (1.0%) 29.6% 8.3% 20.7x 0.62x 7.4x 0.59x 7.0x

Freshpet, Inc. FRPT $7.57 29.2% $254 $0 $19 $235 $110 $2 38.2% NA 47.9% 1.5% NM 2.12x 141.2x 1.76x 13.6x

Oil-Dri Corp. of America ODC 36.71 94.3% 266 15 24 257 263 32 (2.1%) 2.8% 25.5% 12.1% 18.0x 0.98x 8.1x NA NA

Spectrum Brands Holdings, Inc. SPB 99.94 93.8% 5,930 3,973 248 9,655 4,690 732 5.9% 13.0% 35.7% 15.6% 37.6x 2.06x 13.2x 1.90x 10.4x

Maabarot Products Ltd. TASE:MABR 55.18 98.4% 541 18 158 401 346 23 (5.3%) (0.1%) 41.9% 6.7% NM 1.16x 17.2x NA NA

Echo Trading Co., Ltd. TSE:7427 628.00 89.7% 3,791 5,800 3,496 6,095 74,964 57 (0.5%) (0.3%) 12.6% 0.1% NM 0.08x 107.4x NA NA

Unicharm Corporation TSE:8113 2,106.50 62.0% 1,259,922 27,347 115,472 1,171,797 714,138 119,069 19.1% 18.6% 44.2% 16.7% 30.8x 1.64x 9.8x 1.47x 10.2x

Mean 74.6% $159,322 $4,743 $14,956 $149,109 $99,645 $15,030 9.1% 5.5% 34.7% 10.0% 27.8x 1.51x 40.3x 1.76x 11.1x

Median 81.1% $1,937 $394 $171 $2,215 $1,326 $97 4.4% 1.4% 37.8% 10.2% 30.8x 1.40x 15.2x 1.76x 10.4x

EV / 2016ERevenue Growth EV / LTMLTM MarginsLast Twelve Months (LTM)

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


12



Retail

Apparel & Footwear Retail

American Eagle Outfitters, Inc. AEO 13.49 73.0% 2,626 0 363 2,263 3,488 463 7.2% 1.0% 45.2% 13.3% 13.1x 0.65x 4.9x 0.63x 4.4x

Abercrombie & Fitch Co. ANF $25.87 88.9% $1,739 $338 $406 $1,671 $3,525 $343 (10.2%) (6.9%) 61.4% 9.7% NM 0.47x 4.9x 0.48x 5.1x

Aéropostale, Inc. ARO 0.25 5.7% 20 143 42 121 1,603 (62) (16.3%) (12.6%) 31.8% NM NM 0.08x NM 0.08x NM

Ascena Retail Group Inc. ASNA 9.68 55.0% 1,875 1,807 324 3,358 5,281 474 10.3% 12.4% 56.3% 9.0% NM 0.64x 7.1x 0.46x 5.0x

The Buckle, Inc. BKE 28.12 52.5% 1,351 0 150 1,202 1,141 273 0.2% 1.2% 49.3% 23.9% 8.8x 1.05x 4.4x 1.07x 4.6x

Cabela's Incorporated CAB 45.96 78.0% 3,186 4,295 39 7,442 3,864 443 8.5% 9.1% 43.4% 11.5% 17.4x 1.93x 16.8x 1.79x 13.3x

Caleres, Inc. CAL 24.01 71.0% 1,049 200 86 1,163 2,584 176 1.1% 1.3% 40.5% 6.8% 12.2x 0.45x 6.6x 0.43x 5.6x

The Cato Corporation CATO 36.48 81.3% 996 0 260 736 1,001 116 3.8% 2.3% 39.2% 11.5% 15.9x 0.74x 6.4x 0.71x NA

Chico's FAS Inc. CHS 10.80 56.9% 1,504 95 139 1,460 2,672 282 1.6% 2.3% 53.9% 10.5% NM 0.55x 5.2x 0.56x 5.1x

Citi Trends, Inc. CTRN 19.37 67.5% 296 0 76 220 689 42 6.5% 1.6% 38.8% 6.2% 17.6x 0.32x 5.2x 0.30x 4.5x

Destination Maternity Corporation DEST 6.86 41.0% 95 45 2 138 488 (54) (5.6%) (3.4%) 39.6% NM NM 0.28x NM NA NA

DSW Inc. DSW 23.55 59.5% 2,040 0 90 1,950 2,588 317 6.6% 5.9% 37.4% 12.2% 13.5x 0.75x 6.1x 0.73x 7.1x

Destination XL Group, Inc. DXLG 4.57 68.2% 232 84 6 310 438 33 9.4% 3.4% 47.3% 7.5% NM 0.71x 9.5x 0.68x 10.4x

Express Inc. EXPR 16.53 79.8% 1,364 70 91 1,343 2,310 269 7.2% 3.4% 42.9% 11.7% 13.7x 0.58x 5.0x 0.55x 4.5x

Finish Line Inc. FINL 16.76 57.7% 743 0 55 688 1,860 133 4.0% 8.5% 38.0% 7.2% 13.2x 0.37x 5.2x 0.36x 4.2x

Foot Locker, Inc. FL 62.62 81.1% 8,595 131 878 7,848 7,316 1,056 4.1% 7.0% 42.3% 14.4% 16.8x 1.07x 7.4x 1.02x 6.8x

Genesco Inc. GCO 59.50 76.3% 1,314 215 28 1,501 2,983 250 8.1% 5.6% 48.4% 8.4% 13.7x 0.50x 6.0x 0.48x 5.9x

Guess? Inc. GES 18.26 77.9% 1,530 7 402 1,134 2,243 219 (9.9%) (5.0%) 36.0% 9.7% 17.7x 0.51x 5.2x 0.52x 5.2x

The Gap, Inc. GPS 22.68 51.7% 9,115 1,752 1,042 9,825 16,120 2,373 (1.1%) 2.0% 37.0% 14.7% 9.3x 0.61x 4.1x 0.62x 4.7x

L Brands, Inc. LB 93.02 92.0% 26,923 5,766 1,321 31,368 11,828 2,517 5.6% 5.3% 47.5% 21.3% 23.4x 2.65x 12.5x 2.48x 11.5x

Lululemon Athletica Inc. LULU 54.73 78.2% 7,583 0 403 7,180 1,959 423 14.2% 16.0% 48.6% 21.6% 29.8x 3.67x 17.0x 3.23x 15.7x

The Men's Wearhouse, Inc. MW 11.97 18.1% 579 1,656 54 2,182 3,599 328 24.8% 13.8% 42.7% 9.1% NM 0.61x 6.7x 0.64x 6.5x

New York & Company Inc. NWY 2.24 72.0% 144 14 45 113 946 26 2.1% (0.0%) 38.0% 2.7% NM 0.12x 4.4x 0.12x 3.4x

The Children's Place, Inc. PLCE 63.75 91.2% 1,273 34 219 1,089 1,706 148 (2.5%) (1.0%) 35.9% 8.7% 23.4x 0.64x 7.3x 0.63x 6.0x

Pacific Sunwear of California Inc. PSUN 0.19 6.4% 14 132 11 134 800 (1) (1.7%) 2.0% 43.3% NM NM 0.17x NM 0.17x 10.6x

Ross Stores Inc. ROST 52.59 92.8% 21,299 396 487 21,208 11,722 1,875 9.0% 7.8% 32.3% 16.0% 21.5x 1.81x 11.3x 1.70x 10.6x

Shoe Carnival Inc. SCVL 21.82 72.7% 435 0 49 386 978 68 7.1% 5.6% 29.4% 6.9% 15.8x 0.40x 5.7x 0.38x 5.3x

Stein Mart Inc. SMRT 6.62 39.8% 302 192 14 480 1,353 83 4.7% 4.2% 29.1% 6.2% 10.3x 0.35x 5.8x 0.34x 5.5x

Stage Stores Inc. SSI 8.23 35.4% 252 172 23 400 1,627 121 1.3% 0.6% 26.8% 7.4% 10.1x 0.25x 3.3x 0.26x 3.9x

Urban Outfitters Inc. URBN 21.84 46.2% 2,562 115 219 2,458 3,443 496 7.0% 8.9% 41.9% 14.4% 12.2x 0.71x 5.0x 0.69x 4.9x

Zumiez, Inc. ZUMZ 17.09 41.3% 456 1 51 406 820 93 5.2% 9.3% 34.4% 11.4% 14.8x 0.50x 4.4x 0.50x 5.5x

Mean 61.6% $3,274 $570 $238 $3,606 $3,322 $430 3.6% 3.6% 41.3% 11.2% 15.7x 0.78x 6.9x 0.75x 6.6x

Median 68.2% $1,314 $95 $90 $1,202 $2,243 $250 4.7% 3.4% 40.5% 10.1% 14.3x 0.58x 5.7x 0.56x 5.4x

Department Chains

Bon-Ton Stores Inc. BONT $1.76 22.9% $37 $1,139 $22 $1,155 $2,803 $120 0.3% (1.7%) 36.4% 4.3% NM 0.41x 9.6x 0.41x 9.0x

Dillard's Inc. DDS 62.43 43.3% 2,292 952 100 3,144 6,817 786 2.1% 1.0% 36.5% 11.5% 7.9x 0.46x 4.0x 0.48x 4.6x

J. C. Penney Company, Inc. JCP 7.30 72.3% 2,234 5,314 638 6,910 12,522 623 3.1% (4.8%) 36.0% 5.0% NM 0.55x 11.1x 0.54x 8.4x

Nordstrom Inc. JWN 46.81 56.3% 8,607 2,809 821 10,595 14,287 1,792 8.4% 6.9% 36.6% 12.5% 13.4x 0.74x 5.9x 0.72x 6.1x

Kohl's Corp. KSS 50.08 62.9% 9,506 5,135 501 14,140 19,154 2,582 2.0% 0.3% 36.4% 13.5% 13.3x 0.74x 5.5x 0.73x 5.4x

Macy's, Inc. M 38.82 52.7% 12,204 7,963 474 19,693 27,574 3,670 (1.3%) 0.6% 40.0% 13.3% 10.1x 0.71x 5.4x 0.74x 6.0x

Stage Stores Inc. SSI 8.23 35.4% 252 172 23 400 1,627 121 1.3% 0.6% 26.8% 7.4% 10.1x 0.25x 3.3x 0.26x 3.9x

Hudson's Bay Company TSX: HBC 16.24 55.0% 2,957 4,399 292 7,064 9,308 596 17.2% 32.6% 41.0% 6.4% 26.7x 0.76x 11.9x 0.50x 8.1x

Mean 50.1% $4,761 $3,485 $359 $7,888 $11,761 $1,286 4.1% 4.4% 36.2% 9.2% 13.6x 0.58x 7.1x 0.55x 6.4x

Median 53.9% $2,625 $3,604 $383 $6,987 $10,915 $704 2.0% 0.6% 36.5% 9.5% 11.7x 0.63x 5.7x 0.52x 6.1x


PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


13



Discount Stores & Mass Merchants

Big Lots Inc. BIG 36.62 71.6% 1,815 335 62 2,088 5,200 351 0.9% (0.7%) 39.8% 6.8% 13.4x 0.40x 5.9x 0.40x 5.5x

Costco Wholesale Corporation COST 153.18 90.2% 67,365 6,126 6,283 67,208 116,553 4,765 1.8% 4.8% 13.1% 4.1% 28.7x 0.58x 14.1x 0.54x 13.1x

CVS Health Corporation CVS 95.51 84.0% 106,016 27,222 3,011 130,227 149,199 11,186 10.4% 7.5% 17.3% 7.5% 21.6x 0.87x 11.6x 0.75x 10.2x

Dollar General Corporation DG 68.39 84.0% 19,897 3,107 183 22,821 20,021 2,259 8.4% 7.8% 30.9% 11.3% 17.9x 1.14x 10.1x 1.06x 9.4x

Dollar Tree, Inc. DLTR 75.70 89.9% 17,774 8,344 1,111 25,007 12,609 1,500 50.8% 21.1% 36.3% 11.9% NM 1.98x 16.7x 1.21x 10.7x

Macy's, Inc. FDO 34.83 51.5% 11,833 7,963 474 19,322 27,574 3,670 (1.3%) 0.6% 40.0% 13.3% NA 0.70x 5.3x 0.73x 5.9x

Gordmans Stores, Inc. GMAN 3.03 34.0% 60 66 9 117 656 18 2.6% 3.1% 41.6% 2.7% NM 0.18x 6.6x 0.17x 7.1x

PriceSmart Inc. PSMT 75.91 73.3% 2,305 98 140 2,263 2,858 185 11.3% 10.8% 15.9% 6.5% 24.9x 0.79x 12.2x 0.76x 11.7x

Rite Aid Corporation RAD 7.68 81.1% 8,037 7,367 226 15,178 29,314 1,327 11.6% 4.0% 26.4% 4.5% 4.1x 0.52x 11.4x 0.45x 10.1x

Target Corp. TGT 70.41 82.1% 43,376 12,788 1,996 54,168 73,909 7,411 4.0% 0.9% 29.7% 10.0% 15.6x 0.73x 7.3x 0.75x 7.2x

The TJX Companies, Inc. TJX 68.47 89.0% 45,843 1,624 2,123 45,344 30,287 4,271 6.0% 6.8% 28.7% 14.1% 20.9x 1.50x 10.6x 1.41x 10.3x

Tuesday Morning Corporation TUES 5.86 27.2% 260 0 23 236 906 25 2.6% 3.6% 36.1% 2.8% 24.6x 0.26x NM 0.25x 9.6x

Walgreens Boots Alliance, Inc. WBA 81.87 84.1% 88,317 14,277 2,603 99,991 112,923 7,612 45.5% 16.8% 25.9% 6.7% 19.9x 0.89x 13.1x 0.82x 10.6x

Wal-Mart Stores Inc. WMT 63.06 70.6% 201,911 53,124 6,990 248,045 484,028 34,727 0.0% 1.4% 25.0% 7.2% 13.5x 0.51x 7.1x 0.51x 7.6x

Mean 72.3% $43,915 $10,174 $1,802 $52,287 $76,146 $5,665 11.0% 6.3% 29.1% 7.8% 18.6x 0.79x 10.2x 0.70x 9.2x

Median 81.6% $18,836 $6,747 $792 $23,914 $28,444 $2,964 5.0% 4.4% 29.2% 7.0% 19.9x 0.72x 10.6x 0.74x 9.8x

Furniture & Furnishings Retailers

Aaron's, Inc. AAN $21.02 51.5% $1,526 $494 $67 $1,953 $3,137 $441 25.5% 13.0% 50.9% 14.0% 11.2x 0.62x 4.4x 0.58x 5.3x

Bed Bath & Beyond Inc. BBBY 44.23 55.7% 7,235 1,500 491 8,245 12,023 1,702 2.3% 5.5% 38.5% 14.2% 8.7x 0.69x 4.8x 0.67x 5.1x

Conns Inc. CONN 14.81 33.7% 478 1,160 109 1,528 1,583 101 11.5% 23.5% 27.7% 6.4% 12.0x 0.97x 15.1x 0.85x 7.1x

Ethan Allen Interiors Inc. ETH 23.94 73.4% 680 76 87 669 754 86 (0.2%) 1.0% 54.5% 11.3% 18.2x 0.89x 7.8x 0.85x 6.6x

hhgregg, Inc. HGG 2.12 30.9% 59 0 35 24 2,079 (4) (6.5%) (6.2%) 28.4% NM NM 0.01x NM 0.01x 3.8x

Haverty Furniture Companies Inc. HVT 19.45 74.8% 431 54 80 405 802 73 6.7% 6.9% 53.4% 9.1% NM 0.50x 5.6x 0.48x 5.2x

Kirkland's Inc. KIRK 12.17 41.2% 207 0 32 175 542 47 11.7% 7.6% 48.1% 8.7% 13.7x 0.32x 3.7x 0.29x 3.5x

La-Z-Boy Incorporated LZB 21.60 73.6% 1,084 5 85 1,004 1,457 133 4.7% 5.3% 36.6% 9.2% 15.5x 0.69x 7.5x 0.64x 6.2x

Pier 1 Imports, Inc. PIR 4.33 24.7% 362 240 49 554 1,878 154 2.2% 4.8% 37.7% 8.2% 6.9x 0.29x 3.6x 0.30x 4.7x

Rent-A-Center, Inc. RCII 13.36 35.9% 709 914 60 1,563 3,281 280 5.1% 2.3% 66.0% 8.5% 10.0x 0.48x 5.6x 0.47x 5.1x

Restoration Hardware Holdings, Inc. RH 62.99 59.2% 2,550 746 388 2,908 2,045 246 16.4% 22.9% 37.1% 12.0% 26.5x 1.42x 11.8x 1.19x 8.9x

Select Comfort Corporation SCSS 19.92 55.7% 1,009 0 106 903 1,321 181 24.0% 13.5% 61.6% 13.7% 11.7x 0.68x 5.0x 0.68x 6.1x

The Sherwin-Williams Company SHW 243.24 82.6% 22,646 1,960 91 24,515 11,304 1,680 2.6% 6.4% 48.1% 14.9% 23.4x 2.17x 14.6x 2.08x 12.8x

Williams-Sonoma Inc. WSM 51.61 57.7% 4,637 200 72 4,765 4,932 663 6.7% 8.1% 37.6% 13.4% 15.2x 0.97x 7.2x 0.91x 6.6x

Mean 53.6% $3,115 $525 $125 $3,515 $3,367 $413 8.1% 8.2% 44.7% 11.1% 14.4x 0.76x 7.4x 0.72x 6.2x

Median 55.7% $859 $220 $83 $1,266 $1,961 $168 5.9% 6.7% 43.3% 11.3% 12.9x 0.68x 5.6x 0.66x 5.7x

EV / 2016ELast Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


14



Internet Retail

Amazon.com, Inc. AMZN 593.00 85.1% 277,976 18,587 14,428 282,135 100,588 7,007 18.0% 20.7% 32.4% 7.0% NM 2.80x 40.3x 2.31x 20.7x

Alibaba Group Holding Limited BABA $72.25 68.7% $181,523 $54,163 $107,965 $127,721 $86,020 $28,591 35.7% NA 68.0% 33.2% 19.0x 1.48x 4.5x 7.34x 14.7x

Cimpress N.V . CMPR 72.12 76.3% 2,265 810 100 2,976 1,536 200 15.6% 13.2% 61.2% 13.0% 31.0x 1.94x NM 1.75x 11.6x

eBay Inc. EBAY 25.86 38.8% 31,049 7,439 5,301 33,187 17,705 4,889 61.0% 9.6% 67.3% 27.6% 10.4x 1.87x 6.8x 3.74x 9.2x

Mercadolibre, Inc. MELI 104.88 68.4% 4,631 297 341 4,587 632 189 19.4% 21.1% 74.7% 29.8% 46.2x 7.25x NM 7.00x 26.1x

Blue Nile Inc. NILE 34.26 87.8% 395 0 34 362 488 17 5.5% 9.0% 18.8% 3.5% 39.0x 0.74x 21.4x 0.70x 14.7x

Overstock.com Inc. OSTK 10.86 41.9% 274 1 81 193 1,648 21 15.7% 15.4% 18.6% 1.2% NM 0.12x 9.4x 0.11x 4.0x

The Priceline Group Inc. PCLN 1,121.38 75.9% 55,827 5,443 3,053 58,217 9,064 3,438 11.3% 21.4% 92.2% 37.9% 23.4x 6.42x 16.9x 5.65x 14.0x

Shutterfly, Inc. SFLY 40.82 83.1% 1,434 384 134 1,684 995 93 17.2% 21.6% 49.5% 9.3% NM 1.69x 18.1x 1.50x 8.2x

Stamps.com Inc. STMP 97.06 84.9% 1,611 2 99 1,514 186 47 34.9% 18.1% 78.5% 25.3% NM 8.14x 32.2x 5.58x 17.7x

Rakuten, Inc. TSE: 4755 1,225.50 51.2% 1,745,376 588,119 581,489 1,752,006 689,060 154,243 20.2% 18.0% 16.4% 22.4% 23.5x 2.54x 11.4x 2.22x 10.1x

Wayfair Inc. W 40.03 70.4% 3,368 0 325 3,042 1,919 (116) 59.1% NA 24.2% NM NM 1.59x NM 1.09x NM

Mean 69.4% $192,144 $56,270 $59,446 $188,969 $75,820 $16,551 26.1% 16.8% 50.1% 19.1% 27.5x 3.05x 17.9x 3.25x 13.7x

Median 73.2% $3,999 $597 $333 $3,815 $1,783 $194 18.7% 18.1% 55.3% 22.4% 23.5x 1.91x 16.9x 2.27x 14.0x

Specialty & Other Retail

Best Buy Co., Inc. BBY 26.43 62.9% 9,058 1,639 3,347 7,350 40,114 2,217 3.4% (0.3%) 22.9% 5.5% 10.9x 0.18x 3.3x 0.19x 3.3x

Big 5 Sporting Goods Corp. BGFV 11.15 72.1% 245 69 6 309 1,004 48 3.0% 2.8% 31.7% 4.8% 17.7x 0.31x 6.4x 0.30x NA

Barnes & Noble, Inc. BKS $8.55 29.5% $653 $192 $13 $832 $5,996 $290 13.9% (5.7%) 30.3% 4.8% NM 0.14x NM 0.20x 4.1x

Dick's Sporting Goods Inc. DKS 34.32 56.9% 3,946 348 74 4,221 7,191 771 8.9% 8.4% 30.6% 10.7% 11.4x 0.59x 5.5x 0.54x 5.2x

The Home Depot, Inc. HD 119.62 88.3% 151,664 20,862 3,040 169,486 86,701 13,141 6.1% 6.1% 34.9% 15.2% 22.4x 1.95x 12.9x 1.85x 11.6x

Hibbett Sports, Inc. HIBB 29.60 53.1% 674 3 45 632 937 131 5.0% 5.8% 35.5% 14.0% 10.0x 0.67x 4.8x 0.64x 4.7x

Marinemax Inc. HZO 16.16 56.3% 414 137 33 519 751 32 20.3% 12.7% 24.6% 4.2% 8.4x 0.69x 16.4x 0.63x 12.2x

Lumber Liquidators Holdings, Inc. LL 12.54 17.9% 340 20 54 306 1,016 13 (1.7%) 9.3% 33.1% 1.3% NM 0.30x 23.1x 0.30x NM

Lowe's Companies, Inc. LOW 69.91 89.5% 63,975 12,599 1,385 75,189 58,379 6,953 5.5% 4.5% 34.8% 11.9% 22.2x 1.29x 10.8x 1.23x 9.7x

Movado Group, Inc. MOV 22.75 70.6% 524 40 181 382 586 81 0.0% 5.1% 52.9% 13.8% 11.8x 0.65x 4.7x 0.63x 4.4x

Office Depot, Inc. ODP 4.98 51.0% 2,733 1,523 958 3,298 14,840 671 (5.8%) 10.4% 24.1% 4.5% NM 0.22x 4.9x 0.23x 3.6x

Staples, Inc. SPLS 9.14 47.1% 5,883 1,035 782 6,136 21,447 1,393 (5.6%) (3.9%) 26.2% 6.5% NM 0.29x 4.4x 0.29x 4.6x

Tiffany & Co. TIF 66.86 69.3% 8,572 1,079 725 8,926 4,176 1,012 (2.0%) 3.7% 60.1% 24.2% 17.4x 2.14x 8.8x 2.06x 8.4x

Tractor Supply Company TSCO 83.00 86.2% 11,150 201 51 11,300 6,164 776 11.2% 10.1% 34.4% 12.6% 27.7x 1.83x 14.6x 1.68x 13.7x

V itamin Shoppe, Inc. VSI 30.27 67.5% 881 8 2 887 1,263 140 7.1% 10.1% 41.9% 11.1% 15.3x 0.70x 6.3x 0.68x 6.2x

Mean 61.2% $17,381 $2,650 $713 $19,318 $16,704 $1,845 4.6% 5.3% 34.5% 9.7% 15.9x 0.80x 9.1x 0.76x 7.1x

Median 62.9% $2,733 $201 $74 $3,298 $5,996 $671 5.0% 5.8% 33.1% 10.7% 15.3x 0.65x 6.4x 0.63x 5.2x


PAGE |

M&A TRANSACTIONS

RECENT NORTH AMERICAN CONSUMER M&A

CONSUMER AND RETAIL


15

Private Equity

Announced Target Seller Buyer Involvement

1/15/2016 GE Appliances Inc. General Electric Company (NYSE:GE) Qingdao Haier Co., Ltd. (SHSE:600690)

1/14/2016 Prime Life Nutriceuticals, Inc. - Sisquoc Healthcare, Inc.

1/13/2016 Epic Performance, LLC. - NutraFuels, Inc. (OTCPK:NTFU)

1/13/2016 Easton Hockey, Inc. Chartwell Investments Inc. Performance Sports Group Ltd. (TSX:PSG) P

1/8/2016 Long Elegant Legs, Inc. - Long Tall Sally Ltd.

1/7/2016 Gilt Groupe Inc. Draper Fisher Jurvetson, General Atlantic LLC Hudson's Bay Company (TSX:HBC) P

1/7/2016 Majorsales, LLC - Level Nine Sports, INC.

1/7/2016 Sojourner Farms, LLC - WellPet LLC

1/6/2016 Solutions In Mind, Inc. - Frontline Technologies Group LLC

1/6/2016 Maykah, Inc. iD Ventures America, LLC; StartX Patch Products, Inc.

1/6/2016 California Family Health, LLC Bunker Hill Capital Perpetual Capital Partners LLC P

1/6/2016 Holiday Travel, Inc. - Xanterra Parks & Resorts, Inc.

1/5/2016 Home Meridian International, Inc. - Hooker Furniture Corp. (NasdaqGS:HOFT)

1/5/2016 Mills e-Commerce Enterprises, Inc. - KKR & Co. L.P. (NYSE:KKR) P

1/5/2016 Slim, Inc. - Ricardo Beverly Hills, Inc.

1/5/2016 Reef One Inc - OASE GmbH

1/4/2016 509, Inc. - Polaris Industries Inc. (NYSE:PII)

12/31/2015 Octane Fitness, LLC North Castle Partners, LLC Nautilus Inc. (NYSE:NLS)

12/29/2015 Loken Imports, LLC - BCS International, Inc.

12/28/2015 Fitness First Inc. - Combat Brands, LLC

12/23/2015 Orapup - TRUPET LLC

12/22/2015 Brooklyn Nets / Barclay's Center (Minority Stake) Nets Sports and Entertainment LLC Onexim Sports and Entertainment Holding USA, Inc.

12/22/2015 Complete Nutrition, Inc. - Dominus Capital, L.P. P

12/17/2015 Avon Products, Inc., North American business Avon Products Inc. (NYSE:AVP) Cerberus Capital Management, L.P. P

12/17/2015 SBD Holdings Group Corp., South Beach Diet Brand SBD Holdings Group Corp. Nutrisystem, Inc. (NasdaqGS:NTRI)

12/16/2015 1-800 CONTACTS, Inc. Thomas H. Lee Partners, L.P. AEA Investors LP P

12/15/2015 Arrow Group Industries, Inc. - ShelterLogic Corp.

12/15/2015 PRO-TEC Brand DYE Precision, Inc. Bravo Sports Corporation

12/14/2015 TractorSearch.com USAgNet LLC Machinery Pete LLC

12/13/2015 Jarden Corp. The Vanguard Group & J.P. Morgan Newell Rubbermaid Inc.

12/11/2015 Bryan Schuetz DC Inc. - BioStem Technologies, Inc.

12/10/2015 Smart Wireless, 56 stores in OR & WA Smart Wireless, Inc. Spring Communications, Inc.

12/10/2015 Nobile Communications, 50 stores in FL Nobile Communications Spring Communications, Inc.

12/7/2015 Next University, Inc. Flybridge Capital Partners & Grupo Arcano Open English LLC P

12/7/2015 Runaway Tours, LLC - NFL On Location

12/4/2015 Brahms Mount - SFERRA Bros., Ltd.

12/4/2015 Truckee Rents, Inc. - Mountain Hardware & Sports, Inc.

12/4/2015 FDS Inc. Inspired Beauty Brands Inc. WellSpring Pharmaceutical Corporation

12/3/2015 Balboa Water Group, Inc. Quad-C Management, Inc. - P

12/3/2015 Bargain Hunt Superstores - Thomas H. Lee Partners, L.P. P

12/3/2015 Clipper Mill, Inc. - G.E.T. Enterprises, LLC

12/3/2015 Rothschild's Home Health Care Center Inc. - Nunn's Home Medical Equipment, Inc.

12/2/2015 The One World Doll Project, Inc. One World Holdings, Inc. Tonner Doll Company, Inc.

12/2/2015 Environment Furniture, Inc. HCAP Partners Cisco Bros. Corp. P

12/2/2015 MynettMusic, LLC - Sweetwater Sound Inc.

12/1/2015 Alexandria Holdings Corp. Fila Korea Ltd. -

11/27/2015 D&J Hobby Inc. - -

11/25/2015 EXO, Inc. - PF Hospitality Group, Inc

11/25/2015 The Brace Shop, LLC - VeriTeQ Corporation

11/25/2015 Sleepy's, LLC Calera Capital Mattress Firm, Inc. P

11/24/2015 CucinaPro, Inc. - SCS Direct Inc.

11/24/2015 Old Time SPORTS, Inc. - '47 Brand, Inc.

11/24/2015 All Aboard USA, Inc. - Premier Transportation, LLC

11/23/2015 Tri-Lite, Inc., Heater Business Tri-Lite, Inc. Bird-X, Inc.

11/23/2015 DenTek Oral Care, Inc. TSG Consumer Partners Prestige Brands Holdings, Inc. P

11/23/2015 PETCO Animal Supplies, Inc. Freeman Spogli, LG&P, TPG, and others CVC & CPPIB P

11/23/2015 Coveroo, Inc. Rembrandt Venture Partners Zazzle Inc. P

11/20/2015 Bernard Chaus, Inc. - Camuto Group, Inc.

11/19/2015 Liberator Medical Holdings, Inc. Millennium Management & Kinderhook Partners CR Bard Inc. P

11/18/2015 Soft & Dri, Pure & Natural, and other brands High Ridge Brands Co. The Village Company, LLC

11/18/2015 Charles Sadek Import Co., Inc. - Fitz and Floyd Enterprises, LLC

11/18/2015 Lou-Verne, LLC - Studio 11 Design, LLC

11/16/2015 Manicube Inc Bain, Westwood, & Female Founders Fund Elizabeth Arden Spas, INC. P

11/16/2015 Atlas Paper Mills, LLC Peak Rock Capital Resolute Forest Products Inc. P

11/15/2015 Starwood Hotels & Resorts Worldwide Inc. Paulson & Co., T. Rowe Price, & others Marriott International, Inc.

11/12/2015 Dallas Manufacturing Company, Inc. Malibu Lighting Corporation Central Garden & Pet Company

11/12/2015 AquaBlue International, LLC - Vortex Aquatic Structures International Inc.

11/12/2015 Richer Poorer Inc. - Shoes.com, Inc.

11/11/2015 Misfit, Inc. Norwest Venture Partners and others Fossil Group, Inc. P

11/10/2015 Pairpoint Crystal Company, Inc. - -

11/10/2015 ONA Designs International, LLC - Kuzari Group, LLC P

11/6/2015 Diamonds Direct Inc. - The Blackstone Group, Private Equity Group P

11/5/2015 Pure Ocean Botanicals, LLC - W.F. Young, Inc.

11/4/2015 White House Design Company, Inc. - CAI P

11/4/2015 City Sports, Inc. - Gordon Brothers Group & Hilco Merchant Resources

11/4/2015 J. Mclaughlin, Inc. Highland Capital, JH, Palladin, and others Brentwood Associates, Inc. P

PAGE |

M&A TRANSACTIONS

16

RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

CONSUMER AND RETAIL


Private Equity


11/3/2015 Pristine Capital Holdings, Inc. - T3 Live, LLC

11/2/2015 National Balloon and Banner, Inc. - nexAir LLC

11/2/2015 Rhoades, LLC - Mobile Specialty Group, Inc.

11/2/2015 Belson Outdoors, LLC - PlayCore Holdings, Inc.

11/10/2015 Home Franchise Concepts, Inc. - Trilantic Capital Management LLC P

11/9/2015 2nd Wind Exercise Equipment, Inc. - Johnson Health Tech Co., Ltd.

11/5/2015 PS Brands, LLC - GBG USA, Inc.

11/4/2015 Creative Co-Op, Inc. Eureka Growth Capital Management, L.P. Freeman Spogli & Co. Incorporated P

11/3/2015 Little Burgundy The ALDO Group Inc. Journeys

11/3/2015 Tailgate Clothing Co. - American Eagle Outfitters, Inc.

11/3/2015 FuelBelt, Inc. - Implus Corporation

11/3/2015 Coast to Coast Entertainment LLC - Elaut USA, Inc.

11/2/2015 Advanced Graphic Products Inc. - Follett Corporation

11/2/2015 Funko, LLC Fundamental Capital, LLC Acon Investments, L.L.C. P

10/30/2015 Stark Exterminators - Arrow Exterminators, Inc.

10/30/2015 Madison All 4 You LLC - Riddell Sports Group, Inc.

10/28/2015 Custom Brand Footwear, LLC - Bates Accessories, Inc.

10/27/2015 Rite Aid Corporation American Century & T. Rowe Price Walgreens Boots Alliance, Inc.

10/26/2015 Nathan Sports, Inc. - EZ GARD Industries, Inc.

10/26/2015 J&D Brush Company Inc. - Topspin Partners LBO, LP P

10/26/2015 Roots Canada Ltd. - Searchlight Capital Partners P

10/26/2015 Catch Motion Inc. - iON America LLC

10/26/2015 Coyne's & Company, Inc. - Foreside LLC

10/21/2015 Cosmetic Technologies, LLC Ascendiant Capital Markets LLC Knowlton Development Corporation P

10/20/2015 Poulin Lumber, Inc. - Wallboard Supply Company, Inc.

10/20/2015 Ultra Green Packaging Consumer Goods Line Ultra Green Packaging, Inc. Ecosentials LLC

10/19/2015 Combo Hitter - Golden Global Corp.

10/19/2015 SunBriteTV LLC Bunker Hill Capital & Avante Mezzanine, Inc. SnapAV, LLC P

10/19/2015 Paramount Fitness Corp. - TRUE Fitness Technology, Inc.

10/19/2015 Intova LLC - Industrial Revolution, Inc.

10/16/2015 Harrington Fire Alarm & CPG Signals Harrington Signal, Inc. Potter Electric Signal Company, LLC

10/16/2015 Evax Systems, Inc. - Potter Electric Signal Company, LLC

10/15/2015 Petstages, Inc - Outward Hound

10/14/2015 Kolmar Labs Group Inc. - Knowlton Development Corporation

10/13/2015 Flip Flop Shops Inc. - Cherokee Inc.

10/13/2015 Visant Holding Corp. Credit Suisse PE, KKR, Offshore Partners, others Jarden Corp. P

10/13/2015 Maine Coast Book Shop Inc. - Sherman's Books & Stationery, Inc.

10/13/2015 Master Archery Targets - BIGshot Archery LLC

10/9/2015 Spinrite LP - TorQuest Partners, Inc. P

10/9/2015 McNett Corporation - Coghlan's Ltd.

10/9/2015 Pickleball Paddles Plus - Olla LLC

10/8/2015 SNUPI Technologies, Inc. Madrona Venture, WRF Capital, and others Sears Holdings Corporation P

10/6/2015 Pay Your Family First, LLC - Empowering a Billion Women by 2020 LLC

10/6/2015 Sundance Cinemas LLC - Carmike Cinemas Inc.

10/5/2015 American Furniture Manufacturing, Inc. Compass Diversified Holdings Bank of America and Spring Creek LLC P

10/5/2015 Culturata Ltd - Luxury Men's Apparel Group

10/2/2015 SportsGiant, LLC - Pure Hockey, LLC

10/1/2015 Northern Safety & Security, LLC - Per Mar Security and Research Corporation

10/1/2015 Continental Fragrances, Ltd. Beringea LLC; CID Capital, Inc. High Ridge Brands Co. P

10/1/2015 Shoes For Crews, LLC AEA Investors LP CCMP Capital Advisors, LLC P

10/1/2015 Moots Cycles, Inc. - -

10/1/2015 Wise Chem Safe Pest Control Coleman Exterminating, LLC Arrow Exterminators, Inc.

9/30/2015 Goalsetter Systems, Inc. Co-Line Welding Inc. Escalade Sports, Inc.

9/30/2015 Master Z's Dart and Pool Supply - Legends of the Field LLC

9/29/2015 Hearing Aid Express, Inc. - Ear Level Communications, Inc.

9/28/2015 Sabi Inc., Sabi Space Sabi Inc. Urbio LLC

9/24/2015 Mikon International Inc - G.E.T. Enterprises, LLC

9/23/2015 Riopel Marine Inc. - Matica Enterprises Inc.

9/22/2015 Life Highlights Digital Media, LLC - Forever, Inc.

9/21/2015 Nautic Global Group, Inc., Brands Nautic Global Group, Inc. Bennington Marine, LLC

9/21/2015 J. Mendel Inc. The Gores Group LLC Stallion Inc. P

9/18/2015 Gilchrist & Soames, Inc. Swander Pace Capital Sysco Guest Supply, LLC P

9/16/2015 Incase Designs Corp. Swander Pace Capital Incipio Technologies, Inc. P

9/9/2015 Arthur Court, Inc. - Vagabond Group, Inc.

9/8/2015 Joe's Jeans Inc. Joe's Jeans Inc. Sequential Brands Group, Inc.

9/8/2015 Robert Graham Designs, LLC Tengram Capital Partners, LLC Joe's Jeans Inc. P

9/8/2015 CHART Metalworks, Inc. - Sea Bags, Inc.

9/7/2015 Sun & Skin Care Research, LLC CapitalSouth Growth Fund; Source Capital, LLC - P

9/2/2015 California Scents, Inc. - American Covers Inc.

9/1/2015 Industrial Blades Division Edgewell Personal Care Company AccuTec Blades, Inc.

9/1/2015 ACE Theatrical Group, LLC - The Ambassador Theatre Group Limited

8/31/2015 Backyard Leisure Holdings, LLC Baird Capital Partners - P

8/31/2015 Hollywood Fashion Tape, Inc. - American International Industries

8/30/2015 Blyth, Inc. Ropart Asset Management Funds and others The Carlyle Group LP P

8/27/2015 3rd Ave. Studio - Centennial Brands Inc.

8/26/2015 Vintage Blades LLC - The Grooming Network

PAGE |

Private Equity


8/25/2015 Glen Plaid LLC - Collegiate Originals Apparel, Inc.

8/25/2015 Hartcraft, Ltd. - Plano Synergy Holdings, Inc.

8/24/2015 Cyberswim, Inc. - Alphagility, LLC

8/23/2015 Belk Inc. John M. Belk Educational Endowment and others Sycamore Partners P

8/21/2015 Bob Mickler's, Inc. - - P

8/19/2015 The Beachcombers International Inc. - KB Howell Enterprises, LLC

8/18/2015 FULLBEAUTY Brands, Inc. Charlesbank Capital & Webster Capital Apax Partners LLP P

8/16/2015 zulily, Inc. MeriTech Capital Partners and others QVC, Inc. P

8/14/2015 Canwest Bedding Ltd. - SSH Bedding Canada Co.

8/11/2015 Zirtual Inc. Mayfield Fund, VegasTechFund, others Startups.co P

8/11/2015 The Paradies Shops, Inc. Freeman Spogli & Co. Incorporated Lagardère Travel Retail SAS P

8/10/2015 Of a Kind, Inc. Collaborative Fund Bed Bath & Beyond Inc. P

8/10/2015 Marvins Building Materials Inc. - Central Network Retail Group, LLC

8/6/2015 Lemon Tree, K.K. - Left Hand Studios LLC

8/5/2015 Avery Outdoors, Inc. - Banded Holdings Inc.

8/4/2015 Shoe Sensation, Inc. Consumer Growth and Palisade Capital J.W. Childs Associates, L.P. P

8/3/2015 Latham Pool Products, Inc. Littlejohn & Co. LLC Wynnchurch Capital, Ltd. P

8/2/2015 SC Pool & Spa Works & others VivoPools, Inc. Poolwerx USA LLC

8/1/2015 Country Home Products, Inc. - Generac Holdings Inc.

7/31/2015 Infinity Technology & Entertainment Inc. - Vernon Communications Cooperative

7/31/2015 Coyne International Enterprises Corp. - NXT Capital, LLC P

7/29/2015 Onix Sports, Inc. - Escalade Sports, Inc.

7/29/2015 F2Z USA Corp. - F2Z Entertainment Inc.

7/28/2015 Kanata Blanket Company - Pro Towels

7/27/2015 Good Vibrations Shoes Inc. - Vindai Corporation

7/23/2015 No Limit Archery, LLC - Plano Synergy Holdings, Inc.

7/22/2015 Deal Genius, LLC - Hilco Merchant Resources LLC

7/22/2015 Creery Custom, Inc. - Ledbury Inc.

7/21/2015 Globox Rentals, Inc. - Alps Innovations Group, Inc.

7/20/2015 Jimmy Styks, LLC - Vista Outdoor Inc.

7/20/2015 Minno Inc Western Technology, Felicis Ventures, others eBay Inc. P

7/19/2015 Loomworks Apparel, Inc. - Delta Galil USA Inc.

7/17/2015 Ben Sherman Limited and Clothing LLC Oxford Industries Inc. Marquee Brands LLC

7/17/2015 Duffy's Brew LLC - -

7/15/2015 Comark Inc. KarpReilly LLC Pacific West Commercial Corporation P

7/15/2015 KidKraft, L.P. - MidOcean Partners P

7/13/2015 Starplex Operating LP - AMC Entertainment Holdings, Inc.

7/13/2015 Chatters Canada Limited - ONCAP P

7/13/2015 Qponix LLC - Meredith Corporation

7/13/2015 Councill Company, LLC - Kindel Furniture Company Inc.

7/11/2015 WNA, Inc. Olympus Partners Jarden Corp. P

7/9/2015 Sports One Inc. - Hi-Tech Pharmaceuticals, Inc.

7/9/2015 Knowledge Universe Education LLC Knowledge Universe Holdings, LLC - P

7/9/2015 Puremco Fun & Games, Inc. - University Games Corporation

7/8/2015 43 Beauty Brands The Procter & Gamble Company Coty Inc.

7/8/2015 SCIFIT Systems, Inc. - Brunswick Corporation

7/8/2015 Morton's Ace Hardware - Sunshine Ace Hardware, Inc.

7/6/2015 Artissimo Designs Inc. Huron Capital Partners, LLC Excelsior Capital Partners P

Andy WarczakVice [email protected]+1 (612) 359-2714

HW&CO. CONSUMER TEAM

M&A TRANSACTIONS

CONSUMER AND RETAIL


RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

Tim AlexanderManaging [email protected]+1 (612) 359-2716

John Neuner IVManaging [email protected]+1 (804) 915-0125

Glenn GurtcheffManaging [email protected]+1 (612) 359-2702

Brent [email protected]+1 (804) 915-0183

Corey [email protected]+1 (804) 932-1342

Brant [email protected]+1 (612) 359-2709

Ryan [email protected]+1 (415) 217-3409

Chip DugginsVice [email protected]+1 (804) 932-1340

Ryan FreemanVice [email protected]+1 (612) 359-2703

Matt ConatyVice [email protected]+1 (415) 217-3423

17

Ed ArkusManaging [email protected]+44 20 7518 8905

Will [email protected]+44 20 7518 8906














Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Consumer

18

CONSUMER AND RETAIL


Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

OUR FIRM

PAGE |

HARRIS WILLIAMS & CO.

19

SOURCES

S&P Capital IQ.

Thomson Financial.

Reuters.

S&P Capital IQ LCD.

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, HarrisWilliams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2016 Harris Williams & Co., all rights reserved.

CONSUMER AND RETAIL


DISCLOSURES

http://www.harriswilliams.com/

industry update │ january 2016 · industry update │ january 2016 m&a overview consumer and...

Documents